5 C
New York

Bolt lays off staff as payments startup fights lawsuit from biggest customer


Embattled checkout payments startup Bolt on Wednesday became the newest tech startup to put off employees in an increasingly brutal market. 

CEO Maju Kuruvilla broke the news in a note to employees, writing that the corporate is “reducing the scale of our workforce and parting ways with some incredibly talented people on our team as of today.” 

Kuruvilla said that about one-third of the corporate is being laid off, a Bolt source told The Post. That figure includes roughly 130 US and Canada staffers who were axed Wednesday, plus greater than 100 European employees whose jobs shall be eliminated in the approaching days, the source said. 

Several laid-off Bolt employees immediately took to corporate message board Blind to vent and look for brand spanking new jobs. 

“We got shafted,” one Bolt worker wrote.

“It’s a troublesome day for Bolt as a lot of us were impacted by layoffs,” one other worker wrote. “Over the past few weeks it became increasingly obvious that it was coming however it’s hard to swallow all the identical.” 

A spreadsheet with contact information for greater than 100 laid-off Bolt employees looking for jobs was circulating on Twitter Wednesday. The list included employees in engineering, marketing, sales and a number of other other departments.

Bolt CEO Maju Kuruvilla said the corporate is aiming to “reach profitability with the cash we’ve already raised.” Bolt

Bolt spokesperson Brett Stanton didn’t answer questions on what number of employees were affected. Founder and chairman Ryan Breslow didn’t immediately reply to a request for comment.

Breslow made headlines in January when he accused payments rival Stripe, in addition to enterprise capital heavyweights Sequoia and Y Combinator, of conspiring to sink Bolt. He called Silicon Valley a “boys’ club” stuffed with “mob bosses.” Days later, Breslow handed the CEO reins to Kuruvilla and have become the chairman of Bolt’s board. 

Breslow has also made headlines for instituting a four-day workweek at the corporate.

Authentic Brands GroupAuthentic Brands Group, which is Bolt’s largest customer, is suing Bolt for breach of contract. Authentic Brands Group

Bolt makes checkout payments technology. Bolt makes checkout payments technology. Bolt

In April, The Post reported that Bolt — which had previously raised money at an $11 billion valuation in January — had seen the worth of its shares on the secondary market crumble as much as 50%, raising the likelihood that Bolt could struggle to lift more cash without significantly lowering its valuation. 

In Kuruvilla’s note in regards to the layoffs on Wednesday, the CEO said Bolt was aiming to “secure our financial position, extend our runway, and reach profitability with the cash we’ve already raised.” 

Bolt can also be fighting a lawsuit from its biggest customer, Authentic Brands Group — the owner of labels including Brooks Brothers, Without end 21 and Lucky Brand. The retailer has accused Bolt of breaching its contract by failing to deliver software on time. 

Other tech firms including Netflix, PayPal, Klarna, Robinhood, Getir and Carvana have all axed employees in recent weeks. 

Get the latest Sports Updates (Soccer, NBA, NFL, Hockey, Racing, etc.) and Breaking News From the United States, United Kingdom, and all around the world.

Related articles


Recent articles